The quantity of labor supplied increases as the real wage rises because
A) higher real wages mean that nominal wages have increased.
B) the opportunity cost of working increases.
C) the quantity of labor demanded increases.
D) labor force participation decreases so that only serious workers are left in the labor force.
E) the opportunity cost of leisure rises.
E
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The addition to total physical product when one more unit of capital (or loanable funds) is used in production is called
a. marginal physical product of capital b. marginal revenue product of capital c. marginal use of loanable funds d. interest e. depreciation
The present discounted value of a future payment will increase when the
A. Risk of nonpayment increases. B. Future payment is moved further into the future. C. Opportunity cost of money increases. D. Interest rate decreases.